
Thought Leadership
We think a lot about risk—and ways to manage it—in a variety of ways. From rising concerns to best practices to exposure assessments, we're sure you’ll find our expert insights valuable.
Bon voyage: smart tips for the safest travel
For many of our clients, traveling is a well-deserved reward for their hard work. They find great pleasure while getting lost in an exciting destination’s local culture, indulging in delicious cuisine at the world’s best restaurants, exploring ancient ruins, and experiencing the beauty of nature while taking in majestic mountains. Certainly, that is what we hope each journey will be for our clients. Because we are in the risk management business, we know that expected delights can suddenly turn otherwise. Among the travel-related issues we have witnessed: Stolen valuables and travel documents, unexpected illnesses, detainments in foreign nations, natural disasters, even threats of kidnapping or actually being held for ransom. And so, as the travel boom continues and our clients re-engage their wanderlust, we felt it was a good time to offer some best practices for safe and stress-free vacationing. Steps to take before you leave There is a lot you and your team of travel advisors or assistants can do, before you embark, to help ensure smooth sailing. As you dream about your upcoming vacation, we suggest taking care of the following items: Be informed about the destination: Your concierge or travel advisor should provide general and safety information about the region. (The State Department’s travel.state.gov website is a portal to advisories related to specific countries.) Separately, if you are headed off the beaten path, such as on safari, make sure your advisors provide a network of contacts that can assist in the event of an emergency. Confirm your travel insurance coverage: Most luxury credit card companies offer a concierge level of travel services including travel insurance. A quick phone call should help understand exactly what will and will not be covered, as there are often many exceptions. Consider medical evacuation and similar coverages that provide extraction services, medical assistance and more. Again, you will want to understand costs and caveats before signing on. Determine whether you need Kidnapping & Ransom coverage: These policies include negotiation assistance and cover the cost of ransom, among a host of relevant services. Typically, we recommend them to high-profile individuals who will be traveling somewhere with security concerns, but please contact your insurance professional if you want to learn more. Confirm coverage for valuables you plan to take: Whether you will be traveling with jewelry, art, or other high-cost items, you should make sure your policies’ coverage extends worldwide. Your insurance professional will have this information if you need clarification. Backup your important documents: Storing copies of your ID, credit card numbers and important phone numbers on the cloud means you will always have easier access to this information, which, in turn, will make it easier to get replacement documents should you need them. If you use a password manager, it is especially critical to be sure your password is not used elsewhere and is challenging for hackers to replicate, as it protects every other password. Prepare your home: Ask the security company to perform a systems check. Additionally, make sure your backup generator has sufficient gas. And make sure a caretaker or friend has keys (or install a keyless entry) in case trouble arises in your absence. Share your itinerary: Let people at home know when you are traveling and where you are staying so they can alert authorities should something go awry. Steps to take on your trip Your bags are packed, and you are ready to go. Whether you are jetting off via private charter, commercial airlines or embarking on the wide-open seas on a yacht, these strategies will help keep you and your possessions safe so you can simply relax and enjoy the scenery: Be extra mindful with your valuables: Place geotags on important items you plan to check on commercial planes, to track them should they get lost. Only use the safe in your hotel room for low value items. Instead, use the hotel’s vault for all valuables. Be aware of your network when traveling: It is important to have a list of contacts where you will be traveling in the event of an emergency. Having a local advocate can be quite helpful. Be intentional, especially while you are abroad: Because not every locale follows the same due process as the United States does, it is important to research and know the customs of that particular region while vacationing. It is also worth locating the American Embassy in countries you travel in, just in case, and asking your lawyer for the names of colleagues they may have abroad who would be able to help you in worst-case scenarios. Follow local protocols and laws: Most importantly, be aware of any such local ordinances prior to your travel. Some countries, have tight restrictions or outright prohibitions regarding alcohol. For example, chewing gum is illegal in Singapore and in many Muslim countries, women are expected to dress conservatively and wear headscarves in certain areas. Wait to post on social media until you are back home: While it is tempting to share your good time with friends and acquaintances, remember that doing so also alerts potential burglars that you are not home. Moreover, if you post while on vacation you can also reveal where you and your family are traveling, thus putting yourselves at risk. With a little preparation, travel can be joyful and stress-free. Having the proper insurance portfolio to protect yourself against all exposures ensures a delightful adventure awaits you! Following these best practices is the surest way to spend a truly relaxing vacation. ...
Read in 5 minutesIn the driver’s seat: protecting your car at concours and auctions
Car collecting is a glorious passion, shared by a tight-knit community that happily stewards the world’s finest machines. There’s a special camaraderie with our car-collector clients, as we find them to be exceptionally passionate and engaged in their pursuit. Car collectors have a culture of sharing, with everyone quick to show off their vehicles, be it on a drive, or at auctions and showcasing their beautiful craftsmanship at events. In fact, many will tell you that there is nothing quite like being asked to exhibit on the field at Pebble Beach or Amelia Island. Of course, with any passion comes risk. So, whether it’s a slow parade of lovingly vintage roadsters or a local competition of restored muscle cars, we want to be sure your experience brings more pleasure than concern. To that end, here are our risk management best practices for taking your car to shows and auctions. To the Concours! First off, congratulations! To be recruited by a show’s selection committee is quite an honor, which speaks to the uniqueness or beauty of your automobile. But it is also one more reminder that you want to be doing everything in your power to ensure your investment is fully protected. That means you need to: Take care in transporting your vehicle. If you intend to use a third-party transporter, hire one with experience handling high-value collectibles. Even then, it is important to understand how much cargo coverage they carry on each truck. While some shippers offer upwards of $5 million, others offer none at all. And even $5 million may not be enough if a truck happens to be hauling $80 million worth of cars when an accident or other negligible event occurs. In any event, it is best to call your broker to confirm that you will be suitably protected. This check-in can be useful for another reason, too: One of our clients spent an extra $10,000 to insure the transport of his car to a rally in Israel, only to learn later that he already had global coverage in place. If you are moving a vehicle with a borrowed truck and trailer, know that whoever is doing the driving accepts responsibility for the car while it is in their custody and control. That person, then, needs to carry sufficient insurance—unless your policy stipulates that it will cover the bill should something happen. Regardless of how you choose to transport, take a video of the car before handing it off. Walk around the car completely to fully record its condition. (To protect their own interests, many professional transporters will do this as well.) Make sure your coverage will adequately protect your vehicle once it is at the show. The first priority is verifying that you have the proper liability in place for any potential mishap at the event. This is particularly important if your vehicle is either self-insured or not street legal, since you may not have liability protection should you cause bodily injury and/or property damage. This may be one of the rare times the vehicle will be driven around people— workers, spectators, and others at the show— and you want to make sure you are protected on the off chance something happens. Run a background check on any car handlers you intend to hire, including whether they are properly licensed and insured with acceptable driving records. If they are members of your full-time staff, consider this a chance to audit the insurance program that you have for them. It is worth asking your broker to review any waivers connected to the event to determine what organizers agree to cover, particularly in relation to security or weather-related issues. In most scenarios, the burden rests with the car owner, and we always want to have the opportunity to make sure you are properly covered in every case. Now, to auction! How exciting! If you are headed to auction, you have either made the decision to sell or are looking for a new purchase. Either way, ensuring that all goes smoothly requires a few specific steps: Again, make sure your vehicle is adequately covered for transport. The same best practices for getting to a Concours apply here. If you are hiring a professional, confirm that they have sufficient coverage or that your coverage will kick in should need be. If you are doing the moving yourself or entrusting the task to a friend, double check to see that the relevant insurance is in place. Follow all insurance requirements and best practices for the consignment period. Before your vehicle is accepted by the auction house, you will need to provide proof of liability that covers you and the car throughout the sale process. Generally, the consignment agreement states that the vehicle is your responsibility until the transfer. Though coverage responsibility falls to owners in most cases, there can be extenuating circumstances. At one auction in Scottsdale, 80-mph winds toppled an exhibition tent, causing significant damage to several of the cars sheltered underneath. The situation was litigated, for many years and the organizers were found liable. Still, it is always better to not have to rely on the legal system for reparations, so you want to make sure your best coverage is in place. Bring appropriate insurance documentation if you plan to make a purchase: Call your insurance broker in advance of the event to obtain proof of coverage, which is a requisite for bidding at most auction houses. Most insurance carriers provide coverage for new acquisitions for 30 days; however, our preferred carriers often extend to 90 days. We understand why car collectors want to showcase the beauty and craftsmanship of their automobiles and find the selling and buying that takes place at auction almost as exciting as participants do! But with a few precautions, you can spend the next sunny day on the open field or soaking in the energy of an auction, with less worry in sight. ...
Read in 5 minutesFour ways to a more resilient digital life
After several challenging years, the idea of resilience has, understandably, become a popular topic. In fact, when the Harvard Business Review asked readers what they had learned in 2022, “resilience” was among the most common responses. As risk management experts, we are always thinking about areas where clients can build more resilience into their lifestyle. An increased digital footprint is one for most and thus an area where focus is due. Doing more things online brings tremendous convenience and opportunity, but also unfortunately new risks. To make sure that your digital experience is more the former than the latter, we are sharing best practices for leading a more resilient digital life. The following recommendations will help you better anticipate potential issues and adjust your online behaviors and transactions so that you are less at risk of hacking, lawsuits, and fraud. 1. Use connected devices cautiously. The world has quickly grown attached to online home security systems, smart speakers, and other connected devices and with good reason: they are convenient, comforting, and easy to use. Potential downside: Anything connected to the Internet can be hacked. For example, in 2022, two people were indicted for hacking into Ring systems, reporting hoax emergencies then livestreaming the police response. Researchers have also found a way to commandeer Amazon Echo speakers into performing tasks, like opening doors. And there is also concern that these devices listen to private conversations and track what is said. Building resilience best practice: We advise clients against relying on this type of “retail” security protection, as it is no substitute for a professional security team and network. Moreover, carriers only give credit toward premiums to policyholders that install a central station alarm system. Additionally, if you install Alexa or Echo devices, be sure to choose the most secure privacy and access settings, such as turning off voice recordings. 2. Be vigilant about posting publicly. Around 70% of Americans use social media platforms to connect with one another, engage with news content, share information, and entertain themselves. And more than 50 million people worldwide classify themselves as influencers or creators and use social media to promote or recommend brands and other things. Potential downside: If your profile is public, any post might include glimpses of belongings—jewelry, expensive handbags, art— that would be alluring to any observant criminal. But there are other risks, too. Post something negative, and you could be sued for defamation or slander. Promote products that don’t perform, and you could be sued for fraud. Building resilience best practice: Scan the background of your stories and posts before making them public. (Better yet, if you are not an influencer, consider keeping your social accounts private.) Be especially cautious about showing your location or spotlighting your children. Talk with your broker to make sure your collections policy is up to date. Similarly, if your child is an influencer and not yet 18, you could be responsible for their online transgressions, so also ask about liability coverage. 3. Investigate online auctions before participating in them. The pandemic accelerated the relevance of virtual marketplaces – these days even major houses like Sotheby’s and Christie’s regularly host online auctions. Again, the convenience is a major selling point, erasing the need to travel to where the auction is. Potential downside: It’s harder to examine potential acquisitions. Color fluctuates depending on the monitor and condition, too, is also hard to discern. And, of course, the rise of online auctions has led inevitably to the rise of online auction scams. Building resilience best practice: You or your advisors should research an item’s provenance, compare prices of similar items and, most of all, limit your patronage to reputable auction houses. Two warning signs to look out for, particularly when you are dealing with a less-well-known seller: a price that seems too good to be true and a sense of urgency in the negotiation. We urge you to be extra cautious, as aside from maybe a small reimbursement, insurance policies do not usually cover fraudulent auction purchases. 4. Remember that there is currently no coverage for NFTs, and that the market is quite fluid. It was a rollercoaster year for non-fungible tokens (NFTs), the trendy digital artwork that is stored on the blockchain. Yes, the total trading volume in NFTs dropped significantly, but several of the most expensive iterations were sold, too. Clearly, they continue to hold interest for collectors. Potential downside: For now, carriers are not offering any protection for these collectibles, although we are in regular conversations with them about the need for solutions. Additionally, these transactions are rife with scams and recovery of NFTs is slow and difficult. Building resilience best practice: First and foremost, given the volatility and lack of regulation of this market, we suggest only spending an amount you are comfortable potentially losing. Even then, incorporate every possible safeguard with each purchase. This includes buying only from verified marketplaces; using a hardware wallet (which works like a flash drive) to access your NFTs and ignoring random emails as well as pop-ups that promise exclusive opportunities. In today’s challenging insurance landscape, it is especially crucial to build resilience into every aspect of your life. The digital environment is an area that demands extra caution due to the vast risk of exposure. In fact, we believe it requires a concerted effort from the whole family to truly fight cybercrime. These discussions and practicing the above risk management tips will help further increase your digital resiliency online. ...
Read in 5 minutesFeatured topic: Homeowner risk
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